Pioneer Power Solutions, Inc. · NASDAQ:PPSI
Pioneer Power Solutions — Investor Presentation (December 2014)
23 slides from Pioneer Power Solutions's investor presentation, December 2014
Slide 1: Pioneer Power Solutions, Inc. Investor Presentation
Pioneer Power Solutions, Inc. Investor Presentation ©2014 Pioneer Power Solutions, Inc. December 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "
Slide 3: Company Snapshot
Company Snapshot Diversified manufacturer of specialty electrical Electrical Transmission & Distribution Equipment transmission and distribution (T&D) equipment Liquid-Filled Transformers – Headquartered in Fort Lee, NJ 1995 – Built through 5 acquisitions, operations in the U.S., Canada and Mexico
Slide 4: Investment Highlights
Investment Highlights Profitable core business poised for accelerated growth Stable, Profitable Business Growth Opportunities Organic growth of 9.5% (2x industry) (a) Evolving grid requirements – Recurring blue chip customer base – Increasing demands and requirements for grid system stability &
Slide 5: Acquisition of Titan Energy Worldwide, Inc.
Acquisition of Titan Energy Worldwide, Inc. Announced December 2, 2014 Business Overview Sales & EBITDA Trend ($M) Titan (OTC: TEWI) is an onsite power equipment sales and 40 2 FYE December Service Revenue Equipment Sales EBITDA service company serving over 1,000 customers nationwide 1.0 0.6 1 0.3
Slide 6: Pioneer's Position in the Electrical Grid
Pioneer’s Position in the Electrical Grid GENERATION TRANSMISSION DISTRIBUTION Power Transformers Transmission Power Substation Distribution Station Substation Distribution / Control Equipment Solar Wind Farm ON-SITE BACKUP POWER & DISTRIBUTED GENERATION Commercial & Residential Industrial Users Cus
Slide 7: Market Positioning by Product Category
Market Positioning by Product Category (a) Low-Voltage Low Voltage Medium-Voltage Liquid- Paralleling Switchgear Product Category Switchboard/ Dry-Type “Power-Dry” Filled and Generator Panelboards Transformers Transformers Transformers Controls Sales Velocity Sales Cycle Order Value $ Degree of Cust
Slide 8: Customers and Markets
Customers and Markets Revenue Distribution Utilities 2013A Revenue: $88.2 Million Industrial Utilities 35% Distributors and EPC Firms 49% Commercial Industrial 6% Commercial 10% EPC Firms and Distributors 88% of 2013 revenue originated from repeat customers -8-
Slide 9: Industry Size and Structure
Industry Size and Structure Large and Growing North American Market Value of U.S. T&D Equipment Demand ($Bn) (a) – Utilities represent the majority of demand (52%)(a) 6% – Next are industrial/nonutility generators (32%)(a) 6% – High diversity of product and market niches 2012 – The majors: ABB, GE
Slide 10: Industry Growth Drivers
Industry Growth Drivers Aging Power Grid Service Life of the U.S. Electrical Infrastructure (a) Built more than a half century ago, designed for our 100% needs at the time, has not changed since 75% 42% 50% Nearly a majority of T&D infrastructure is near or past its useful service life 50% Deman
Slide 11: Growth Strategy
Growth Strategy Organic Acquisitions EXPAND PRODUCT/SERVICE OFFERINGS STRATEGIC FIT Continued migration towards more Broaden range of solutions by augmentation of highly engineered power distribution solutions. technical expertise, new and existing sales Maximize sales productivity across portfolio
Slide 12: Acquisition Track Record
Acquisition Track Record Five Acquisitions Completed Since 2010 (a) Aggregate Purchase Price Consideration $27.1 Million 100% Intragroup 14.3 53% sourcing & economies 4.3 16% Consolidate 8.5 31% or expand facilities Cash to Sellers PPSI Stock to Sellers Debt Assumed/Repaid Recruit additional Acquisi
Slide 13: Financial Overview
Vad PIONEER POWER SOLUTIONS Financial Overview
Slide 14: Summary Operating Statement Data
Summary Operating Statement Data ($ millions, except per share data) Revenue ($M) Gross Profit ($M) 100 30 88.2 89.2 84.0 25 21.8 75 68.8 21.0 67.0 68.1 20 18.9 16.0 47.2 50 15 16.6 11.6 15.8 10 25 5 +46% +22% +5% 2% 24.6% +25%23.2% +23%22.6% 24.7% 24.7% 23.2% 23.6% - - 2010 2011 2012 2013 YTD 2013
Slide 15: Financial Position
Financial Position ($ millions) Condensed Balance Sheet ($M) Liquidity Measures ($M) 09/30/14 09/30/14 Assets Cash and cash equivalents $ 0.7 Current assets $ 33.8 Accounts receivable 14.1 Current liabilities (18.9) Inventories 14.7 Net working capital $ 14.9 Prepaid expenses and other current asset
Slide 16: Acquisition of Titan Energy Worldwide, Inc.
Acquisition of Titan Energy Worldwide, Inc. Expected Sources & Uses of Funds ($M) (a) Financing Uses Cash portion of purchase price funded Purchase price from Titan equity holders $2.3 through combination of new term loan and revolving borrowings from Bank of Montreal Titan debt repaid/purchased f
Slide 17: Current View for 2014
Current View for 2014 Updated Revenue and Earnings Guidance 2014E Guidance Full Year Assumptions 2013A 2014E ∆% Revenue growth of ~3% at guidance mid-point Transformers $86 $78 - 84 -6 to -2% – Transformers: flat organic growth Switchgear/board 2 10 - 14 pos + (constant currency basis), -3% at mid
Slide 18: Investment Summary
Investment Summary Stable & profitable core businesses Recurring blue chip customer base Aging North American electrical infrastructure needing replacement Increasing demands and requirements for grid system stability & efficiency Rising investment in on-site backup power & distributed gen
Slide 19: Contact Us
Contact Us Corporate Headquarters: Investor Relations: Pioneer Power Solutions, Inc. Brett Maas 400 Kelby Street, 9th Floor Managing Partner Fort Lee, NJ 07024 Hayden IR, LLC (T) 212.867.0700 (T) 646.536.7331 (F) 212.867.1325 brett@haydenir.com www.pioneerpowersolutions.com www.haydenir.com - 19 -
Slide 20: Questions & Answers
Questions & Answers
Slide 21: Supplemental Financial Schedules
Supplemental Financial Schedules
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (In thousands, except per share data) Nine Months Ended Years Ended December 31, September 30, 2010 2011 2012 2013 2013 2014 Reconciliation to Non-GAAP Net Earnings and EPS: Earnings per share from continuing operations (GAAP measure) $ 0.55 $ 0.42 $ 0.54 $ 0.84 $
Slide 23: Key Market & Ownership Statistics
Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Recent Closing Price (12/12/2014): $9.25 Shares Outstanding (M): 7.2 Market Capitalization ($M): $66.3 Freely Traded Float (M): 2.5 Valuation Measures Major Shareholder Ownership Information Enter
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